Income drawdown: Getting the timing right

Any financial adviser whose clients have suffered the triple whammy effects of falling stock markets, plummeting gilt yields and reduced GAD limits will understand the need for minimising ‘market timing risks' for drawdown portfolios. Of course all of the risks cannot be mitigated all of the time, but most of the risks can be managed. Although there are so called ‘third way' products that seek to reduce risk by incorporating guarantees, this may come at a disproportionate cost to the investor. On ‘like for like' underlying growth the impact over a 20 year period of a 1% annual guarant...